Transocean Inc. Provides Update on Discoverer Enterprise
HOUSTON--(BUSINESS WIRE)--June 16, 2003--Transocean Inc. (NYSE:RIG) today announced the deepwater drillship Discoverer Enterprise remains on location in the U.S. Gulf of Mexico at zero dayrate while continuing the investigation with respect to the riser separation which occurred on May 21, 2003. A significant portion of the riser string has been recovered and preparations are being made to recommence operations after completing some riser component treatment based on the results of the investigation to date. The company believes that this work will be completed within the next two to three weeks. Seven other Transocean deepwater drillships use the same type of riser. As a precautionary measure, the company plans to schedule some downtime on the seven other drillships to inspect the riser, but does not believe such downtime will be significant. Once the investigation and inspections are complete, the company will determine what modifications, if any, will be required. The eight Transocean drillships that use this type of riser are the three Enterprise-class rigs (Discoverer Enterprise, Discoverer Sprit, Discoverer Deep Seas), the four Pathfinder-class rigs (Deepwater Discovery, Deepwater Frontier, Deepwater Millennium, Deepwater Pathfinder) and the Deepwater Expedition.
With respect to the second quarter, the company had previously stated that it expected deterioration in its financial results and identified a number of factors that were likely to lead to such decline in results. In light of the incident on the Discoverer Enterprise, unexpected downtime on several other rigs and an approximate $10 million loss of revenue due to the Nigeria labor strike, the company now expects revenues for the quarter ended June 30, 2003, to be at or slightly below first quarter 2003 revenue levels.
Statements regarding resumption of operations by the Discoverer Enterprise, timing and extent of any modifications, anticipated downtime and costs, revenues for the quarter ended June 30, 2003, as well as any other statements that are not historical facts in this release are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, risks associated with international operations, results of investigations regarding riser, actions by customers and other third parties, the future price of oil and gas and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.
Transocean Inc. is the world's largest offshore drilling contractor with more than 170 full or partially owned and managed mobile offshore drilling units, inland drilling barges and other assets utilized in the support of offshore drilling activities worldwide. The company's mobile offshore drilling fleet is considered one of the most modern and versatile in the world with 13 fifth-generation semisubmersibles and drillships, 15 other deepwater semisubmersibles and drillships, 32 mid-water semisubmersibles and drillships and 55 jackup drilling rigs. Transocean Inc. specializes in technically demanding segments of the offshore drilling business, including industry-leading positions in deepwater and harsh environment drilling services. With a current equity market capitalization in excess of $7 billion, the company's ordinary shares are traded on the New York Stock Exchange under the symbol "RIG".
CONTACT: Transocean, Inc., Houston Analyst Relations: Jeffrey L. Chastain, 713/232-7551 or Media Relations: Guy A. Cantwell, 713/232-7647 SOURCE: Transocean, Inc.